Attempt to obstruct financial powers of Pondy govt, says CM

Puducherry Chief Minister V Narayanasamy Tuesday made a veiled attack on Lt Governor Kiran Bedi for trying to 'obstruct' the financial powers of the territorial government, particularly in releasing grants to cooperative institutions and public sector undertakings.

Addressing functionaries of various cooperative societies at a function here, the Chief Minister said, "The elected government in the national capital territory of Delhi has full financial powers and no files on sanction of funds were sent to the Delhi Lt Governor for approval."

But, in Puducherry an 'amusing practice' is sought to be adopted by some sections, which only 'obstructs' the financial powers of elected government thereby 'affecting' the employees in cooperative societies and public sector undertakings, Narayanasamy said.

 

In an apparent reference to the recent circular of Puducherry Finance Secretary that restricted delegation of financial powers to subordinate authorities to contingent and miscellaneous expenditures, Narayanasamy alleged there were attempts to put obstacles to his government in fiscal matters.

This comes a day after Bedi had asked Narayanasamy to withdraw his 'standing order' cancelling the circular of the Finance Secretary, saying it was not in conformity with the Union Territories Act.

Narayanasamy lamented that on the one hand the Centre was not earmarking sufficient funds for Puducherry while on the other there were 'obstacles' locally for the government to implement various schemes and to sanction grants to institutions and public sector undertakings.

Expressing concern over the Centre not including Puducherry in the Central Finance Commission, he said this was hitting allocation of central funds to Puducherry.

"We are thus in a very unenviable position," he said asking the cooperative societies to show improvement by adopting newer strategies by departing from conventional outlook.

He said he was yet to get a reply from Union Home Minister to his representation on the current woes of the Puducherry government in fiscal matters and also to his plea that elected government should have full fiscal powers as is adopted in Delhi.

Welfare and Cooperative Minister M Kandasamy, who presided over the function, said although Narayanasamy was aMember of Parliament for nearly two-and-a-half decades earlier and was also a Central Minister, he was not in a position to overcome the current 'difficulties' caused by some sources in running the administration in Puducherry smoothly.

Also, Kandasamy took strong exception to the Centre reducing its grants to Puducherry from 90 per cent of the total budgetary allocations in the past to 25 per cent now.

The former IPS officer, who has been at loggerheads with the Congress government over various issues, said the standing order issued Sunday was 'not in conformity with the Government of Union Territories Act 1963 and the rules governing regulation of finances of the administration'.